Sanofi (SNY): Today's Featured Drugs Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Sanofi ( SNY) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Sanofi fell $0.66 (-1.2%) to $53.84 on light volume. Throughout the day, 968,116 shares of Sanofi exchanged hands as compared to its average daily volume of 2,592,500 shares. The stock ranged in price between $53.84-$54.40 after having opened the day at $54.14 as compared to the previous trading day's close of $54.50. Other companies within the Drugs industry that declined today were: Biota Pharmaceuticals ( BOTA), down 65.6%, XenoPort ( XNPT), down 15.3%, ProPhase Labs ( PRPH), down 9.7% and Durect Corporation ( DRRX), down 9.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Sanofi researches, develops, manufactures, and markets healthcare products worldwide. The company operates through Pharmaceuticals, Human Vaccines, and Animal Health segments. Sanofi has a market cap of $145.4 billion and is part of the health care sector. The company has a P/E ratio of 29.1, above the S&P 500 P/E ratio of 17.7. Shares are up 15.0% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Sanofi a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Sanofi as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Peregrine Pharmaceuticals ( PPHM), down 18.8%, Oramed Pharmaceuticals ( ORMP), down 15.0%, Discovery Laboratories ( DSCO), down 12.7% and Raptor Pharmaceutical ( RPTP), down 11.7% , were all gainers within the drugs industry with Herbalife ( HLF) being today's featured drugs industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the drugs industry could consider SPDR S&P Pharmaceuticals ETF ( XPH) while those bearish on the drugs industry could consider ProShares UltraShort Nasdaq Biotech ( BIS).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.